Rigel Pharmaceuticals, Inc.
) have been on a downward trend ever since the company announced
last month that it was discontinuing the development of its
pipeline candidate R333. The company decided to terminate the
development of the candidate after its disappointing performance
in a phase II study. The candidate was being developed for
treating active skin lesions in patients suffering from discoid
Rigel Pharma reported narrower than expected loss in the third
quarter of 2013 earlier in the month. However, quarterly results
failed to reverse the declining trend and shares have continued
Rigel Pharma's third-quarter 2013 loss (excluding
restructuring costs) of 25 cents per share was narrower than the
Zacks Consensus Estimate of a loss of 29 cents as well as the
year-ago loss of 36 cents. Lower operating costs were primarily
responsible for the narrower loss.
Rigel Pharma did not generate any revenues in the third
quarter of 2013. The company did not generate revenues in the
year ago quarter as well.
Research and development expenses came in at $17.6 million in
the third quarter of 2013, down 12.9%. General and administrative
expenses decreased 13% to $4.7 million in the third quarter of
2013. The reduction in operating costs was due to a decline in
share-based compensation expenses.
We remind investors that during the third quarter of 2013,
Rigel Pharma trimmed its work force by approximately 18% (30
positions) in order to utilize its resources more
Rigel Pharma was also in the news when
) returned the former the rights to pipeline candidate,
fostamatinib. AstraZeneca took this decision following the below
par results of the candidate in the rheumatoid arthritis
indication. Rigel Pharma intends to continue developing
fostamatinib for treating patients suffering from immune
The company intends to commence 2 phase III studies on the
candidate in the first half of next year. Top line data from the
studies is expected in 2015.
Rigel Pharma currently carries a Zacks Rank #3 (Hold). At
present, companies like
AMAG Pharmaceuticals Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
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